FROG — Cloud growth and cash
JFrog's cloud business is growing much faster than the company as a whole. The next question is whether that shift keeps producing cash.
On November 5, $FROG reported third-quarter revenue of $179.2 million, up 31% from a year earlier. Cloud revenue rose 60% to $101.5 million and represented 57% of total revenue, up from 46% a year earlier. JFrog helps developers manage and secure software.
The company also reported 112 customers with more than $1 million in annual recurring revenue, up from 71. On the earnings call, management said higher cloud consumption and the conversion of usage above contract levels into larger contracts helped drive cloud growth.
Those are signs of customer expansion. They are not a guarantee that the same pace continues: usage can fluctuate, and larger customers may make results more sensitive to individual deals.
Free cash flow was $66.5 million in the quarter, while adjusted operating income was $40.7 million. Those measures answer different questions and adjusted profit excludes some costs.
Watch cloud growth, large customer counts and free cash flow together in the next results. Sustained growth across all three would be stronger evidence than one standout quarter.